Oscar Kalumiana (Acting Energy Permanent Secretary) objecting to calls for ZESCO to be separated into three separate companies generation, distribution and transmission in order to make the power market more competitive and encourage investment in the market. Although ZESCO is not a statutory monopoly, it handles virtually all generation, transmission, and distribution of electricity in Zambia. ZESCO is a company on the ropes, beset by inefficiencies and high costs. According to the Cost of Service Study, ZESCO experienced five straight year of losses from 2002–06 and in the last few months has overseen significant power shortages in the country including the Black Weekend. Mr Kalumiana's response to all this is that size is irrelevant, although he perhaps could have said size has advantages. In any case citing Eskom is simply sakism. The wrong thought process among Zambian politicians that just because others are doing it, we should also do the same thing. Other people's actions [in this case RSA] are the best reasons for your own actions.
“There are some symptoms of problems at Zesco but this is not because it is too big….Zesco only generates 1,700 mega watts of power and I don’t think tha would be considered a huge responsibility compared to other power utilities such as Eskom in South Africa which generates 45,000 mega watts of power. This is a huge difference but the South African government has maintained the company in public hands.”
Oscar Kalumiana (The Post 30/04/2008)
Saturday, 3 May 2008
Quote of the week (Oscar Kalumiana)
THEMES : electricity